The container ship SEROJA LIMA (99,500-dwt, built 2011) which lost a number of containers overboard during rough seas in Nelson Mandela Bay recently. The ship has a carrying capacity of 8,540 TEUs. The area on the ship where the containers fell can be seen in this picture, which was taken from the shore by Dirk Erasmus, courtesy of Glyn Hunter

The Durban Container Terminal is often the butt of criticism concerning productivity but the latest report by the world’s largest container carrier, Maersk Line, might cause something of a rethink. In its latest report Maersk ranks DCT, Pier 2 in 1st place among African ports.

DCT’s Pier 1 fares less well, but still comes in at a handy 8th position.

These results amongst African ports are based on berth productivity year to date. The berth productivity key performance indicator is monitored for all of African ports by Maersk Line vessels.

The results may surprise some who will be forced to revise their opinions on the matter. While the results are based on the experiences of Maersk Line ships it nevertheless should act as a guide to other lines operating with a wide range of container ships.

Durban Container Terminal remains the major export hub into the Southern African Development Community (SADC). Its exports into the continent are also increasing each year.

Durban’s economic contribution to South Africa’s GDP is estimated to be approximately 10 percent and it produces more than 70 percent of the wealth of the KZN province.

New straddle carriers and RMGs confirmed

TPT has also confirmed reports already published by PORTS & SHIPS about new machinery and equipment that have been received and have or are going into service at Pier 2.

These include 10 new Kalmar straddle carriers, four other straddle carrier and two rail mounted gantry cranes (RMG).

The equipment has been acquired as part of TPT’s strategy to modernise the terminal to service larger calling vessels, meet the needs of landside calls and improve overall efficiencies.

The straddles were assembled on site and handed over to the operations team last month (October). The outstanding six will be in full working condition by the end of this week. One of the RMGs has passed the 100 hours endurance test and was handed over to operations with the remaining one to follow by the end of the week.

“Our duty is to deliver world class service to our customers and we have invested in this new equipment to do just that,” says Zeph Ndlovu General Manager for Transnet Port Terminals KZN Region.

The new RMGs will service the rail terminal as replacements for the two 34-year-old DEMAG cranes. They are equipped with a rotating trolley and have a span of 22.5m, a lifting height of 11m and a lifting capacity of 41 tons under the spreader. TPT says this is in line with its intention of improving rail operations for the diversion of cargo from road transport to rail and to offer end to end logistics and solutions to customers.

The new Kalmar Straddles are diesel electric and boast a twin-lift capability, thus increasing DCT’s terminal’s compliment of twin-lift straddles from 32 to 46.

The straddle carriers are eco-friendly and will reduce fuel consumption from about 27 litres to 22 litres per hour. Pressure will also be alleviated in both the waterside and landside operations.

The overall spend at Pier 2 now stands at R1,3 billion and will increase the terminal’s container handling capacity to 3,3 million twenty-foot equivalent units (TEUs) by 2017. Capacity currently sits at 2,9 million TEUs.

No sooner has China Shipping Container Lines prepared to take delivery of the first of their new 19,000-TEU container ships, CSCL GLOBE (see yesterday’s News Bulletin) than Maersk Line has contradicted previous indications by entering into talks with South Korean shipyards regarding an order for six ships of a similar, i.e. 19,000-TEU size.

Last week Soren Skou said that Maesrk would be placing orders for additional Triple-E type ships of 18,000-TEU, but it seems the thought of an advantage being held by the Chinese company has proven too much.

Trade Winds reckons that the new deal will set Maersk back by about US$ 1 billion on ship orders.

Maersk’s partner in the 2M Alliance, Mediterranean Shipping Company also has six super container ships on order and although not confirmed, speculation is that they might also be in the 19,000 TEU range.

While the word out is that Maersk is in talks with the shipyards, don’t be surprised to read in due course that the order is for ships exceeding even 19,000-TEU. The prestige or boasting rights of having the biggest ship around appears to be just as strong as it was a few years back when ships were supposedly in the 8,000 to 10,000-TEU range.

The three shipyards in discussion with the Danish company are believed to be Samsung Heavy Industries, Hyundai Heavy Industries and Daewoo SME.

News continues below…

MAJESTY OF THE SEAS TRANBSFERS TO PULLMANTUR IN 2O16

Majesty of the Seas at Key West

Cruise company Royal Caribbean Cruises has announced that it will be transferring MAJESTY OF THE SEAS to its European-based Pullmantur brand as from 2016.

The transfer will take place in April 2016 when the ship enters dry dock for a full refit before joining the Pullmantur fleet. This will enable her interior décor and fittings to be restyled for the Pullmantur brand.

“The vessel’s transfer is an excellent business opportunity for both Royal Caribbean and Pullmantur. We are fortunate that our mix of brands allows us the flexibility and opportunity to expand in key strategic markets,” says Richard D Fain, Chairman and Chief Executive Officer of Royal Caribbean Cruises Ltd.

Pullmantur’s President and Chief Executive Officer, Jorge Vilches said that the transfer of Majesty of the Seas will play an important role in Pullmantur’s Latin American growth strategy.

“It will help us become one of the most widely recognised brands in that market. The additional capacity will help us meet the rising demand for Pullmantur’s distinctive Latin-style cruise holidays,” he said.

The addition of Majesty of the Seas will increase Pullmantur’s total guest capacity by more than 20 percent. Pullmantur is based in Spain and caters mainly for Spanish speaking guests, operating cruises in the Mediterranean and other European destinations and to Latin America.

STRONG GROWTH IN THROUGHPUT FORECAST FOR PORT OF MOMBASA

Mombasa container terminal – expected to handle 980,000 TEU this year

The Port of Mombasa is expecting to increase the total volume of cargo handled in 2014 by over 14 percent as compared with last year.

According to managing director Gichiri Ndua, this is due to the increase in capacity at the port, good marketing and improved coordination between the port authority and the general port community.

Total throughput of cargo is anticipated to reach 25.5 million tonnes this year, against the 22.31mt of 2013, said Ndua.

He said the number of containers handled in 2014 should reach 980,000 TEU by the end of December, compared with 945,000 in 2013. “Operational performance continues to paint a positive trend and by the end of December, indications are that we shall handle more cargo than we did last year.”

Transshipments have seen an unprecedented 186.3 percent growth with a total volume of 287,339 tons for the 10 months of 2014 compared with 100,374 tons recorded over a similar period in 2013.

Transit cargo to neighbouring countries rose from 3.22 million tons in the first 9 months of 2013 to 3.53mt for the same period this year. Uganda handled 73.1 percent of that total.

Transit cargo to Rwanda amounted to 110,540 tons compared with 98,240 tons for the same period of 2013.

News continues below…

WESTMINSTER GROUP CLINCHES WEST AFRIC FERRY DEAL

More ferries for West Africa. The Dutch-owned ferry AGUENE (2,679-gt, built 2014) which together with a sister vessel DIAMBOGNE called at Cape Town for bunkers and supplies before heading for Dakar in West Africa last week. Picture: Ian Shiffman

The UK-headquartered Westminster Group Plc. has through its Managed Services division secured a 21 year agreement with a government in West Africa for the complete management and operation of a number of recently constructed ferry terminals together with the provision of a new sea ferry transfer service.

Back in August Westminster and the U.K. sea ferry operator CWind, through their 50/50 joint venture subsidiary Sovereign Ferries, signed a Memorandum of Understanding with a government in Africa for the long term provision of sea ferry transfer service.

Sovereign Ferries will be commencing a new ferry service to transport passengers between key facilities and main conurbations around the coast. In addition, the operation will be expanded to include a water taxi service around the coast and to neighbouring territories, assisting the country concerned to expand its tourist potential by providing safe transit to and from potential resort areas.

Based on current market conditions and forecasted economic growth, Westminster believes that the venture’s revenues are expected to be in the region of US$ 300m over the period, with there being significant incremental revenue potential from further routes and services.

WORLD SEABORNE TRADE GROWS BY 3.8 PERCENT IN 2013

DAL Karoo at Cape Town. Picture: Ian Shiffman

Reflecting stumbling growth in the world economy, world seaborne shipments grew by an average of just 3.8 percent in 2013, taking total volumes to nearly 9.6 billion tons, UNCTAD's Review of Maritime Transport 2014 reports.

Much of the expansion in seaborne trade was driven by growth in dry cargo flows, in particular bulk commodities, which grew by 5.6 percent, the report says. Meanwhile, world container port throughput increased by an estimated 5.6 percent to 651.1 million twenty-foot equivalent units (TEUs) in 2013.

The new report also reveals that the size of the world fleet reached a total of 1.69 billion deadweight tonnage in January 2014, following 4.1 percent growth in 2013. Bulk carriers accounted for 42.9 percent of the total tonnage, followed by oil tankers (28.5 percent) and container ships (12.8 percent).

This rate of growth was lower than that observed during any of the previous 10 years, and the trend in early 2014 suggests an even lower growth rate for the current year, the report says. The slowdown reflects the downturn of the largest historical shipbuilding cycle, which peaked in 2012.

As for future vessel deliveries, during 2013, for the first time since the economic and financial crisis in 2008, the order book increased slightly for most vessel types. After the previous significant decline, the report suggests that it will take time for those resuming vessel orders to prompt the start of a new shipbuilding cycle.

It calculates that the largest national fleets by flag of registration in 2014 are those of Panama, followed by Liberia, the Marshall Islands, Hong Kong (China) and Singapore. Together, these top five registries account for 56.5 percent of world tonnage.

Shipowners increasingly locate to third countries

The 2014 edition of the Review of Maritime Transport introduces a novel analysis regarding the ownership of the fleet, drawing a distinction between the concept of the “nationality of ultimate owner” and the “beneficial ownership location.”

The latter reflects the location of the primary reference company, that is to say, the country location of the company that has the main commercial responsibility for the vessel, while the “ultimate owner’s nationality” states the nationality of the ship’s owner, independent of the location. Just as today most ships fly a flag from a different country than the owner’s nationality, the Report notes that owners are increasingly locating their companies in third countries, adding a possible third dimension to the “nationality” of a ship.

Freight rates remain low and volatile

The Report found that 2013 was marked by another gloomy and volatile maritime freight rates market: all shipping segments suffered substantially, with freight rates in dry bulk and tanker markets reaching a 10-year low in 2013 and similarly low levels in the liner market. Low performance of freight rates was mainly attributable to the poor world economic development, weak or hesitant demand and persistent supply overcapacity in the global shipping market.

In 2013, private equity investments continued to play a key role in the shipping industry, as traditional bank financing remained very limited.

World container port throughput increases

With world container port throughput increasing by an estimated 5.6 percent to 651.1 million TEUs in 2013, the share of port throughput for developing countries grew about 7.2 percent, higher than the 5.2 percent increase estimated for the previous year. Asian ports continue to dominate the league table for port throughput and terminal efficiency.

Despite this relatively weak growth compared with the trend before the economic crisis, the terminal operating sector is very active, the report says. Several global terminal operators have sold part of their stakes as they seek to streamline and focus their operations. Terminal operators closely linked to shipping lines have sold terminals, while traditional global terminal operators, such as DP World and Stevedoring Services of America, have attempted to strengthen their position by focusing upon investment.

Progress continues to be made …
… regarding legal issues and recent regulatory developments in the field of transport.

The Review of Maritime Transport 2014 reports that the Nairobi International Convention on the Removal of Wrecks, 2007, will enter into force in 2015. As regards regulatory developments relating to environmental and related issues, additional guidelines to support the implementation of a set of technical and operational measures to boost energy efficiency and reduce greenhouse gas emissions from international shipping has been adopted by the International Maritime Organization.

Regulations to reduce emissions of other toxic substances from burning fuel oil, as well as environmental and other provisions of the draft international code for ships operating in polar waters (Polar Code), continued to be negotiated. The report notes that continued progress has been made regarding the implementation of the existing framework and programmes in the field of maritime and supply-chain security, as well as international measures to combat maritime piracy.

Background

Maritime transport is the backbone of international trade and the global economy. Around 80 percent of global trade by volume and over 70 percent of global trade by value are carried by sea and are handled by ports worldwide. These shares are even higher in most developing countries.

The Review of Maritime Transport, an UNCTAD publication, has since 1968 provided coverage of key developments affecting international seaborne trade, shipping, the world fleet, ports, freight markets, and transport-related regulatory and legal frameworks. As in previous issues, the 2014 report contains critical analyses and unique data, including long-term data series on seaborne trade, fleet capacity, shipping services and port-handling activities.

The full report can be found HERE - use you BACKSPACE key to return to this page

NSRI’S WATERWISE USES MILK CONTAINERS AS A LIFE RING

Lifesaver milk container and stick

In the hope of preventing children from drowning the NSRI’s educational initiative, WaterWise Academy, is testing a water safety project which uses affordable life rings.

The project, using a 3 litre milk container attached to a pole with a length of rope, is being tested in Ceres in the Western Cape and will soon also be trialled in the Eden district.

The WaterWise Academy’s Ceres based Instructor, Eoudia Erasmus, with the blessing of farmers and the help of school children, is putting ‘rescue buoys’ in places where children play in water during the summer.

“To make this project work, the farmers on who’s property the rivers and dams are, as well as the children, and entire communities, must work together,” said project manager Andrew Ingram.

“The project is not only educational in that it raises awareness of the dangers of water, but it also re-enforces the emergency telephone number 10177 that we teach children during our WaterWise Academy lessons at schools.”

“If you consider that a torpedo buoy or life ring costs about R300 each, this project, which is sponsored, will cost a fraction of that, making it sustainable,” said Ingram.

“The beauty of the project is that it consists of easily obtainable equipment, it is affordable, and most importantly it is community driven.”

Initially 20 of the rescue buoys, consisting of a pole, a 3 litre milk container with emergency details printed on it and a length of rope, will be placed at high risk areas in Ceres and Eden. The rescue buoys will be monitored by the children who put them up.

EXPECTED SHIP ARRIVALS and SHIPS IN PORT

Gateway port

Ports & Ships publishes regularly updated SHIP MOVEMENT reports including ETAs for ports extending from West Africa to South Africa to East Africa and including Port Louis in Mauritius.

In the case of South Africa’s container ports of Durban, Ngqura, Ports Elizabeth and Cape Town links to container Stack Dates are also available.

You can access this information, including the list of ports covered, by going HERE - remember to use your BACKSPACE to return to this page.

PICS OF THE DAY - GRETA

The German-owned, Antigua & Barbuda-flagged general cargo ship GRETA seen arriving in the Port of Cape Town last week. This type of self-geared general cargo ship can hardly be regarded as highly attractive but are nevertheless a practical design for smaller type vessels. Pictures: Ian Shiffman

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